Correlation Between Carlyle and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Carlyle and Carlyle Secured at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Carlyle and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Carlyle Secured Lending, you can compare the effects of market volatilities on Carlyle and Carlyle Secured and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Carlyle with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Carlyle Secured.
Diversification Opportunities for Carlyle and Carlyle Secured
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlyle and Carlyle is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending and Carlyle is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Carlyle Group are associated (or correlated) with Carlyle Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of Carlyle i.e., Carlyle and Carlyle Secured go up and down completely randomly.
Pair Corralation between Carlyle and Carlyle Secured
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 2.32 times more return on investment than Carlyle Secured. However, Carlyle is 2.32 times more volatile than Carlyle Secured Lending. It trades about 0.12 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about -0.08 per unit of risk. If you would invest 5,057 in Carlyle Group on August 27, 2024 and sell it today you would earn a total of 308.00 from holding Carlyle Group or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Carlyle Secured Lending
Performance |
| Timeline |
| Carlyle Group |
| Carlyle Secured Lending |
Carlyle and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Carlyle Secured
The main advantage of trading using opposite Carlyle and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Carlyle Secured can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Carlyle Secured will offset losses from the drop in Carlyle Secured's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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